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Tuesday, 7 January 2014

Oman: Sohar Islamic’s Housing Finance Covers 80% of Property Value

MUSCAT -

Bank Sohar understands that one of the greatest joys is to own or build your own home. The bank’s Islamic banking arm, Sohar Islamic, offers clients a range of options to suit their specific needs, keeping in mind the Shariah compliancy and other Islamic regulations.

Sohar Islamic’s home finance programme is fully compatible with Islamic Shariah law and provides a comprehensive Islamic finance solution. This product is distinguished for its affordability and flexible terms which offer financing for up to 80 per cent of the property value, with a repayment period of up to 25 years at very competitive profit rates and quick processing time.

Mohammad Haris, AGM, head of Islamic banking, said, “Sohar Islamic’s housing finance programmes differ from a conventional ‘interest mortgage’ because they provide financial help without our clients having to pay us interest. We can do this by employing two accepted methods of Islamic finance - Murabaha and Ijara - both widely used in the Muslim world and approved by Shariah law.’”

The housing finance programme comes within a unique and flexible framework catering to the varied financing needs of customers wishing to acquire real estate property at competitive leasing rates and with financing up to 80 per cent of the price within a flexible financing period of up to 25 years. In addition, preferential profit rates are provided to customers for the first and second year along with the facility to takeover. If required, instalment deferment options are also available for the convenience of the customer.

Among the benefits of this programme is that the beneficiary is not required to pay any early charges if the dues are repaid after one-third of the tenure. The customer can also avail of bundled solutions with a pre-approved auto finance limit. The programme also offers quick processing and co financing and joint customer financing facilities.“The Islamic Housing Finance is only one of the financial products to be offered by Sohar Islamic from a comprehensive bevy of banking solutions covering a wide array of retail and corporate financing needs. These products are developed to the highest international Shariah compliant banking standards,” Haris said.

Sohar Islamic will also provide corporate financial solutions consisting of asset finance, working capital finance, trade finance, treasury and investment products. Bank Sohar has four Sohar Islamic branches, located in Falaj al Qabail, Firq, Saada as well as in the capital city of Muscat.